At the end of a commercial lease, attention often turns to dilapidations.
But one of the most important pieces of evidence may be a document prepared years earlier: the original Schedule of Condition.
Why does the original condition matter?
A commercial property will naturally change over time.
Walls become marked, finishes deteriorate, fittings wear and building elements require maintenance.
Without evidence of the property’s starting condition, it can be difficult to distinguish between pre-existing defects and deterioration during the tenancy.
What does the Schedule actually prove?
A Schedule of Condition records the property’s apparent condition at the time of inspection.
It does not prove who caused every defect or establish every future repairing obligation.
Its value comes from providing a contemporaneous record that can be compared with the property’s later condition.
What if the original schedule says the property was already defective?
This can be particularly important.
If an item was clearly recorded as defective before the tenant occupied the premises, the tenant may have evidence that the condition did not originate during their tenancy.
However, the lease wording remains critical.
Some leases may impose obligations that go beyond simply returning the property to its precise starting condition.
What if there was no Schedule of Condition?
The absence of an original schedule does not automatically mean that a tenant is liable for everything identified at lease expiry.
Other evidence may still be relevant, including:
- Photographs.
- Emails.
- Inspection reports.
- Repair records.
- Dilapidations correspondence.
- Previous surveys.
- Condition reports.
- Documentation relating to works undertaken before or during the tenancy.
The evidential position may simply be more difficult.
Can a surveyor recreate the original condition?
A surveyor cannot recreate evidence that does not exist.
However, available historic documentation can sometimes assist in understanding how the property appeared at an earlier date.
The reliability of that evidence will depend on what is available.
What should tenants do before their next lease?
If the lease contains significant repairing obligations, consider arranging a Schedule of Condition before or at the commencement of the tenancy.
It is far easier to establish the property’s starting condition at the time than several years later.
Stokemont’s advice
The end of a lease is a poor time to discover that nobody properly recorded the condition of the property at the beginning.
For tenants taking on substantial repairing obligations, a detailed Schedule of Condition can provide valuable evidence throughout the life of the lease.
